- Markets are about unchanged this morning and volumes are pretty weak as we begin the Fourth-of-July holiday week in the US. As of writing, the DJIA is down 0.23%, while both the S&P500 and Nasdaq are flat.

- The pending home sales index climbed 6.1% m/m, crushing expectations and marking the biggest advance in the series since April 2010. The y/y component is still in negative territory, but this year is rapidly catching up with the very good results seen in 2013. The NAR said that it is seeing "a slight easing in underwriting standards are needed to encourage first-time buyer participation, especially as renting becomes less affordable." Homebuilders are up 1-3% in the early going.

- New York State's highest court rules that individual municipalities may ban hydraulic fracturing. The issue in the ruling hinged on whether towns could ban gas drilling via zoning powers, or whether the state Department of Environmental Conservation's power to regulate gas drilling trumps town laws. Note that fracking has not been allowed in New York for more than five years, since the state imposed a moratorium.

- Crude is slipping a little lower this morning, briefly getting to the $105 handle before ticking up again. In Iraq, headlines this morning suggest the Kurds are looking to undertake an independence referendum just a day after ISIS declared its caliphate, adding substance to talk about the continuing partition of Iraq. In Ukraine, the ceasefire has been blasted to bits by Ukrainian and separatist military action, although the diplomatic process continues as well, with Moscow and Kiev reportedly agreeing to work on establishing a bilateral ceasefire between Ukraine and the separatists.

- General Motors will spend whatever it takes to compensate victims of accidents related to faulty ignition switches. The fund established by the company is being overseen by Ken Feinberg and will take claims from Aug. 1 through Dec. 31, giving customers time to prepare their documentation. GM will pay anyone who proves they were injured in a crash tied to the faulty switches and the fund will have no monetary cap.

- There has been a handful of merger news this morning, but no megadeals announced. PPG entered a deal to acquire architectural and industrial coatings company Comex for $2.3B. Devon Energy said it would sell $2.3B worth of non-core assets to Linn Energy, including 275M cu ft of gas equivalent per day production. AbbVie's CEO will reportedly fly to London this week to try to convince Shire shareholders on the value of the deal, and stories suggest AbbVie may increase its offer if they gain enough shareholder support.